Patient Home Monitoring Announces Record Quarterly Revenues, Profits; Increase in Organic Growth Rate to Over 25% Annually; Appointment of Cole Cox as Chief Financial Officer

LOS ANGELES, CALIFORNIA--(Marketwired - Oct. 14, 2014) - Patient Home Monitoring (PHM) (TSX VENTURE:PHM), a profitable, acquisition-oriented company focused on providing annuity-based healthcare products and services to patients in the home throughout the US, today announced highlights of its Fiscal Year 2014 fourth quarter revenues and profits, including organic growth figures.

PHM also announced it has appointed Cole Cox as Chief Financial Officer (CFO).

Financial highlights for the quarter ending September 30, 2014:

• Revenues exceeded $8,800,000; an increase of 59% from the previous quarter and 715% from the quarter a year ago.
• Adjusted EBITDA⁽¹⁾ exceeded $2,100,000; an increase of 62% from the previous quarter and 888% from the same quarter a year ago.
• Net profit before stock-based compensation⁽²⁾ exceeded $1,500,000; an increase of 67% from the previous quarter.
• Annualized organic revenue growth for the quarter exceeded 25%.
• September 2014 revenues exceeded $3,000,000 as compared to June 2014 revenues of $2,700,000, an increase of $300,000 attributed exclusively to organic revenue growth.
• Annualized revenue run rate in excess of $35,000,000.
• Annualized Adjusted EBITDA run rate in excess of $8,800,000.

As in the case of other quarterly financial results, the foregoing figures are unaudited. Full financial results from this quarter will be included in the full year audited financial statements (October 1, 2013 - September 30, 2014) available on SEDAR expected before February 2015.

PHM continues to build its pipeline of qualified acquisition targets:

• 11 active targets in initial due diligence
• 5 term sheets in negotiation
• 1 Letter of Intent (LOI) executed
• 2 LOIs pending

Using its strong and growing balance sheet, PHM expects it can close deals in the pipeline without any additional equity financing.

PHM is rolling-up a large and fragmented market of small, profitable businesses providing healthcare products and services to chronically ill patients. The companies are acquired for their technical and market expertise in certain product and service lines, as well as their patient databases. Once acquired, PHM works to offer these newly acquired services to its entire patient base, thereby increasing revenue per patient and achieving organic post acquisition revenue growth and profits.

Cole Cox as Chief Financial Officer

Mr. Cox has been appointed Chief Financial Officer by the Board of Directors. Mr. Cox, based in Southern California, was most recently CFO of a Toronto Stock Exchange listed company. Previous to his experience as a public company CFO, he was a senior auditor in public accounting at Grant Thornton LLP.

"This marks our sixth consecutive quarter of record sales and profits," said Michael Dalsin, Chairman and Investment Banker for PHM. "We have worked hard to achieve high triple digit revenue and profit growth over the last 18 months and we expect to continue to add significant revenues and profits through both organic and inorganic growth strategies.

We are focused on adding more patients and services through acquisition, resulting in continued improvements in revenues, profits and organic growth. And as a result, I continue to look for ways to augment our leadership team. As part of this process, I would like to welcome Cole Cox to our management team. He comes with deep experience in fast growth companies and fills an important role as PHM's operations develop."

"Since our first acquisition, our main priority has been organic revenue growth" said Andrew Folmer, President of PHM. "It is gratifying for our team to see the results of that effort this last fiscal year. As part of this organic growth, we continue to add patients to our high margin service lines and invest heavily in home-based medical devices and with each month, we build our balance sheet and make PHM stronger, with the ultimate goal of increasing shareholder value."

As a result of the AGM on April 11, 2014, PHM confirms it has closed the amalgamation of HH4Me described in detail in the circular dated March 14, 2014 and an announcement from March 28, 2014.

About PHM

PHM is an acquisition-oriented, fast-growing and profitable company servicing patients with heart disease and other chronic health conditions. PHM is focused on acquiring companies in a highly fragmented and developing market of small privately-held companies servicing chronically ill patients with multiple disease states caused mainly by age and obesity. Because of the new and highly fragmented nature of the market, PHM is actively identifying and evaluating profitable, annuity-based companies to acquire at favorable prices for their patient databases and technical expertise. PHM's post-acquisition organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating the patient's services and making life easier for the patient. The expected result is growing EPS with each acquisition and growing revenue and profits from the cross selling efforts.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

⁽¹⁾ Adjusted EBITDA is defined as EBITDA not including stock based compensation.

⁽²⁾ Net Profit does not include stock based compensation or change in the IFRS Fair Value of options and warrants expense.

Forward-Looking Statements

Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of the future outlook of PHM and anticipated events or results, are assumptions based on beliefs of PHM's senior management as well as information currently available to it. While these assumptions were considered reasonable by PHM at the time of preparation, they may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including the availability of funds and resources to pursue operations, decline of reimbursement rates, dependence on few payors, possible new drug discoveries, a novel business model, dependence on key suppliers, granting of permits and licenses in a highly regulated business, competition, difficulty integrating newly acquired businesses, low profit market segments as well as general economic, market and business conditions, and could differ materially from what is currently expected. This press release refers non-GAAP and non-IFRS financial measures that do not have standardized meaning prescribed by GAAP or IFRS. PHM's presentation of these financial measures may not be comparable to similarly titled measures used by other companies. These financial measures are intended to provide additional information to investors concerning PHM's performance.